IMPACT OF SECTION 404 SOX ON THE ENERGY & RELATED INDUSTRY

Adverse SOX Section 404 Reports
For Companies with Years Ended in 2006
As of May 17, 2007

The following is a copy of the nine adverse reports that were issued from companies in the Energy & Related industry with years ended in 2006. These were all of the accelerated filers in the Medical Equipment industry with adverse Sarbanes-Oxley Section 404 management self assessments. This information was gathered using the online research tool called Audit Analytics an Ives Group, Inc company.

The following is a summary of the material internal control weaknesses reported in the ten adverse SOX Section 404 Self Assessments:

energy2006_1

The following is a summary of the material accounting weaknesses reported in the ten adverse SOX Section 404 SelfAssessments. Section 404 is not just about internal control issues, but also about misapplication of financial accounting and reporting issues:

energy2006_2

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